ACA Penalties - How to Qualify for an Extension

Learn about the fines and exemptions for the Affordable Care Act.

1. Understand The Penalty

  • In 2014, the penalty for not purchasing health insurance was 1% of taxable income, or $95 per adult and $47.50 per child.
  • In 2015, the penalty was 2% of taxable income, or $325 per adult and $162.50 per child.
  • In 2016, the penalty was 2.5% of taxable income, or $695 per adult and $347.50 per child.
     

2. Check if you’re exempt

Certain circumstances may relieve you from having to pay the penalty, including…

  • If you’ve been uninsured for less than 3 consecutive months
  • If the lowest available plan exceeds 8% of your income
  • If your income is low enough that you’re not required to file a tax return
  • If you’ve experienced a financial or other type of hardship

3.How To Apply For An Exemption

Use Liberty Tax’s Online Health Insurance Exemption Guide or visit your local Liberty Tax Service location to apply for an exemption in person.

ACA Penalties and How to Qualify for an Extension